Chartz 1-2-3 is a top-selling electronic spreadsheet product. Chartz is about to release version 5.0. It divides its customers into two groups: new customers and upgrade customers (those who previously purchased Chartz 1-2-3, 4.0 or earlier versions). Although the same physical product is provided to each customer group, sizable differences exist in selling prices and variable marketing costs: (Click the icon to view the price and cost information.) The fixed costs of Chartz 1-2-3 5.0 are $16,500,000. The planned sales mix in units is 60% new customers and 40% upgrade customers. Data table Read the requirements. Requirement 1. What is the Chartz 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? Begin by determining the sales mix. For every bundle, units are sold to new customers, and 2 units are sold to customer who bought upgrades. Determine the formula used to calculate the breakeven point when there is more than one product sold, then enter the amounts in the formula to calculate the breakeven point in bundles. Fixed costs 16,500,000 Contribution margin per bundle 550 Breakeven point in bundles $ 30,000 The breakeven point is 90,000 units for new customers and 60,000 units for upgrade customers. Requirement 2. If the sales mix is attained, what is the operating income when 170,000 units are sold? Units sold Total revenue Total variable costs Contribution margin Fixed costs Operating income New customers Upgrade customers 102000 33150000 68000 19550000 Total 170000 52700000 New Customers Upgrade Customers Selling price Variable costs Manufacturing Marketing $ 195 $ 115 $ 15 $ 15 50 65 20 35 130 $ 80 Contribution margin Requirements 1. Print Done What is the Chartz 1-2-3 5.0 breakeven point in units, assuming that the planned 60% / 40% sales mix is attained? 2. If the sales mix is attained, what is the operating income when 170,000 total units are sold? 3. Show how the breakeven point in units changes with the following customer mixes: a. New 40% and upgrade 60% b. New 80% and upgrade 20% c. Comment on the results. Print Done